Price list for various different kinds of alcoholic drinks sold in India (Based on selling price in Uttarakhand)
COSTCARD_24_25.pdf (uttrakhandexcise.org.in)
EDP refers to ex-distillery price - the price at which the manufacturer sells
You can also see the price which we pay at the shop which changes from state to state.
The difference between the two goes into state government’s pockets.
“Indri is aged for 6 years and Dru variant is aged for 8 years. ”
Taken from an excerpt by MD in Piccadily Distillery visit video; time stamp 24:20
That is not possible. The creator of Indri, Surrinder Kumar started working there only in 2019 or so, maybe later. 8 years ago he was working at Amrut distillery.
My guess would be that maturation of casks was happening in the warehouse much before Surrinder Kumar joined them.
In the distillery visit, MD also talks about buying 90 year old cask from an old French distillery; he said they are unsure of how it is going to turn out. Anyways, making new products requires lots of mix and match and see what sells?
Slightly offtopic, but I feel the visiting centre built by them is very small and a letdown when I compare it to the one built by Sula Wines.
Views invited
I am transcribing from 24:00 min onwards -
“…final product is matured. So you can see we have 7 year old wine casks over here 10 year wine casks over here 3 year old so different ages of liquid are also brought together to make whatever we are making our average age of a #### the single malt whiskey is about 6 year old we do adhere to the guidelines that we don’t use any malt that is less than 3 years old in our bottle but the youngest is 6 years old in all our products…”
It seems quite confusing and contradictory but I think they mix from 3 years old to later years.
That is the age of the cask not the age of the liquid inside. Brand new casks are very rarely used for aging whisky. Most probably never. There are things you can age in brand new casks and there are things you “cannot” age in brand new casks. Single malt whisky is one of them. Bourbon is always aged in brand new oak casks. Whisky distillers buy used casks from the United States that was once used for aging bourbon (like Jack Daniels) so that some of the flavor of bourbon is passed on to the whisky. That is why you hear terms like ex bourbon, ex sherry etc. A finished product is often a blend from ex bourbon, ex sherry, ex wine, ex rum casks.
PS : Wishing all our members a very happy Independence Day.
I have observed a significant trend where the majority of industry players are concentrating their efforts on the high-premium segment, resulting in a noticeable expansion of their production capacities. Interestingly, even companies that have traditionally focused on high-volume, lower-cost products are now venturing into the premium market. However, it’s crucial to recognize that while the supply in this segment is rapidly increasing If the demand isn’t keeping up at the same rate. This imbalance between supply and demand suggests that the industry might face a period of consolidation in the medium term
No one can stop luxury demand from a macro PoV. Indian UMC, HNI & UHNI pool is only going to grow exponentially and consumption patterns across the board will get upgraded. Staples, alco-bev is 1st order effect. Not worried about this for now.
Purpose is different. Sula has marketed that as a tourism spot. They show separate revenues for that in their P&L. This visitor centre is to build more of a brand culture & recognition. Helps with loyalty, repeat customers and even lower marketing spends for future launches.
When there is demand ,there is no dearth of supply by importing ,it has always been so. Local production is different from the perspective of the companies but does not change the overall supply . Previously demand was less so importing made sense but now it’s more lucrative to produce locally .Also every company wants to sell premium because of higher margin just like people wants to open restaurant amend not pice hotels to make money …
Would like to hear the inputs of others tracking the stock on the following— as per the press release “Indri witnessed an outstanding sales volume growth to 24,733 cases (9 Litre cases) in
Q1 FY 24-25 from 7,371 cases (9 Litre cases) in Q1 FY 23-24, an increase of 236% Y-o-Y”, which is almost 3.5x of the corresponding quarter in the previous FY.
If this is the case, then why has the distillery revenue increased by only 12.9%? Assuming the realisation per bottle is ~Rs.3,000:
Given:
1 case = 9 liters
1 bottle = 750 ml = 0.75 liters
Price per bottle = ₹3,000
Number of Cases:
Q1 FY 24-25: 24,733 cases
Q1 FY 23-24: 7,371 cases
Calculating the Number of Bottles:
Convert cases to liters:
Q1 FY 24-25: 24,733 cases × 9 liters/case = 222,597 liters
Q1 FY 23-24: 7,371 cases × 9 liters/case = 66,339 liters
Convert liters to bottles:
Q1 FY 24-25: 222,597 liters ÷ 0.75 liters/bottle = 296,796 bottles
Q1 FY 23-24: 66,339 liters ÷ 0.75 liters/bottle = 88,452 bottles
Calculating the Total Realization:
Total realization for Q1 FY 24-25:
296,796 bottles × ₹3,000/bottle = ₹89,03,88,000
Total realization for Q1 FY 23-24:
88,452 bottles × ₹3,000/bottle = ₹26,53,56,000
With a revenue of 105 crore from the distillery division in Q1 FY 23-24, we get ~80 crores that’s come from revenue outside of Indri.
In Q1 of FY 24-25, with a revenue of 119 crores, only ~30 crores of revenue has come outside of the Indri brand.
From what @Gaurav_Agarwal shared earlier (from their previous AR):
Golden wings whisky - 8,315
Whistler whiskey - 49,371
Kamet (single malt) - 3,912
Indri trini - 15,145
Camikara rum - 253
Royal highland - 432
Pretty much 99% of their revenue comes from whiskey, so I’m not sure how they’re saying it’s seasonal when the same non-Indri whiskey brands clocked an additional 50 crores in revenue in the corresponding quarter of the previous FY.
@Mohit_baid any chance you could follow up with this question since you have an open line of communication with them?
Just to give an idea on growth rates… Radico has done 60% and 110% volume growth in FY24 & FY23 respectively in its lux segment (Rampur whiskey + Jaisalmer Gin). Rampur whiskey is a direct competitor of Indri.
You can draw your own conclusions on revenue & margin from Indri assuming 150k / 250k cases in FY25 and FY26 respectively. Add to that Camikara rum that’s going to show volumes in FY26 once the next production run is ready to be bottled.
Don’t forget the 50 lac cases worth of Malta they sold in FY23 and prolly similar in FY24. Whiskey wouldn’t be substantial portion.
Radico is the biggest player in UP Country liquor markets and they have substantial share in CSD business which is primarily Rum and regular whiskies. Yes they are preimiumizing their portfolio by launching more and more brands in premium segment but getting success is tough . Jaisalmer competes with Bombay sapphire , Tanqrey , Gordons , Rokus of the world . Radico has launched another Single Malt Sangam .buts its going to be tough to gain shares and if UKFTA comes through than competition would be tough.
An attempt to estimate quarterly sales of Indri based on recent disclosure of no. of cases sold:
Q1fy24: 15 cr (7370 cases12 bottles 1775 edp realisayion price)
Q2fy24: 15 cr (assuming increase in sales vs q1fy24 of distillery segment to be largely from indri - fair assumption i’d say. In this case there was no growth qoq)
Q3fy24: 60 cr: (sales increase vs q1fy24 was 50 cr, assuming most of it was from indri)
Q4fy24: 85 cr ( sales increased 85 cr from q1fy24, assuming most of it was indri)
Q1fy25: 52 cr (24700 cases12 bottles per case1775 edp realisation price per bottle)
As far as i can see the growth has just started. Indri sales from this quarter were almost similar to that of q3fy24 which is peak winter/festive season. Obv this assumes the information management is giving is correct and not fraudulent.
Disc: invested
I meant 99% of their finished/bottled products comes from whiskey. Again, I’m just trying to figure out and understand where the sale of this malt and other whiskey is in this quarter that was there in the corresponding quarter last year.
Disclosure: Invested
You are making the mistake of ignoring the 58.5 lac cases of Malta rum they mentioned at page 16 of the same annual report . So they did not make 99% of sales from whisky in fy23. It’s possible that they have stopped or reduced production of less profitable products . They have reduced selling malts to other distilleries going by the podcast shared earlier in this thread.I do not think it is possible to accurately calculate the share of profit and revenue solely from Indri unless management shares the details . But AR for FY24 will give some indication of products discontinued or reduced .
Okay, I was going off of the figures posted by Gaurav in his earlier post. In that case I stand corrected. But again, where have the sales of Malta rum and the other brands/sources of revenue in the distillery segment gone this past quarter is what I was trying to get to.
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Notes
Demand is outstripping supply
Industry growth: 35% YoY CAGR
Single Malt (Indri) growth: 50% YoY
Indian market for Indian single malts : 4L cases pa (note: this does not include foreign single malts)
Indri market share in Indian single malts in India: 25%
Indri market share in the general single malt space in India: 12% (not sure if I heard correctly)
Margins for their existing portfolio of whiskeys: 15 to 18%
Margins for Indri (gross margin): “upwards of 70%” (45% EBIT is reasonable expectation given this)
Guidance for 25% margin for the whole year (I think this is for the whole company)
Indri capacity expansion - 12KLPD to 30KLPD
Ambition to take Indri to top 5 in the single malt space in the world
New products are going to be launched this year (Gin most likely?)
